[Open-graphics] OGD1 pricing

[Attila Kinali]

On Tue, 28 Feb 2006 07:39:19 -0500
"Timothy Miller" <theosib at gmail.com> wrote:


> I don't NEED to sell more than a few thousand/year.  Selling a few
> thousand would be huge and prove our value to a partner.

Then we'll need some good marketing. I don't know how many
those FPGA board manufactorers sell, but i doubt it's a lot.
On the other hand, i know at least 3 of them and i did not
even search for them. So, given that we can do a good marketing,
a good support from our side (ie fast turaround cycles for problems,
good support "hotlines" etc), then we should be able to reach
thousands a year. But that's a big if. And noone can say anything
about the volume unless we have some idea of the market size.
 
> But I do want to maximize profit.  If I can reduce the price a bit and
> sell way more, then that's a win.

Yeah, that's always the big question with pricing.
 
> Actually, volume pricing is what would do it.  If one sold for $1000,
> but 50 sold for $650, someone would buy a batch and resell them.

Good idea. Distribute the work of selling the card to retailers.
If the margin is high enough, resellers will beat each other
to be able to sell OGD.

On the other hand. Is it possible to build a distribution channel
ourselves? Saving those 20-30% of margin?

> > After OGD became a viable (ie a self supporting) product,
> > then we can think about selling it cheaper to developers.
> 
> I'm already thinking of selling it cheaper to developers.  If it
> retails for $1000, but you can get one for $600, how would you feel?

Quite good. Knowing that those 600 are just barely
over the production cost (if at all)

> > BTW: have you tried to estimate how big the various
> > markets are?
> 
> No.

First thing to do then. I'd ask some universities and
R&D labs on how many they would buy if the price is
600, 700, 800, 900, 1000USD...
 
> >
> > > But OGP makes it a different animal.
> >
> > How do you mean that ?
> 
> Its association with the OGP makes it harder to think of it purely in
> terms of being an FPGA board.

Then we have to work against that. If we want to sell
it as an FPGA development board, then those people have
to think of it as such, ignoring the analog part completely
(unless of course they want to do some analog output for
machine control or whatever)

 
> > [1] Side note: i'm still a student and thus have to be
> > rather conservative on how i spend my money until i get
> > a decent job.
> 
> Don't worry about yourself.  You'll get one you can afford.  That is
> not the concern here.

Don't worry about me. I will buy one if i have the money.
Though i'm not sure whether i should apply for a developer
price, as i cannot say whether i can really spend some
time on developing.

> > wer soviel schoggi isst, kann sowieso nicht dumm sein ;-)
> 
> Who somuch ?? eats, can ?? not dumb be?
> 
> Mein Deutsch ist sehr rusty.  :)

"Who eats so much chocolate cannot be dumb anyways."

This came up in an IRC discussion early in the morning,
so dont take it to seriously :)

			Attila Kinali

-- 
wer soviel schoggi isst, kann sowieso nicht dumm sein ;-)
		-- Sandra